Feb 02 2009
Tax Information When Working From Home
Keeping good records is a MUST when working from home. Thankfully, my sister is a CPA, but there are many products out there if you need to do your own taxes. TurboTax is a popular one, and many use it with great success. From the beginning of the year, I set up spreadsheets of my work at home jobs and mystery shopping (in case I decide to do any). I keep a record of miles I drive, what I make each month, and any purchases made. I check off when I receive payment also. I keep all receipts also! I print all of this information out for her at the end of the year. I make a list of everything I use when working, laptop, desktop, cell phone, regular phone, Skype, measure office space, electricity, etc. She then will figure out how much I am allowed to deduct. Here is a home deduction website http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P07_2740
Just remember, if you are an independent contractor you want as many deductions as possible, so make that list!
Stumble
Thanks for the information. I wasn’t sure what you would be able to write off when you work from home.
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I’ve worked with people who’ve done deductions for business expenses, but I’m still getting the hang of figuring out which ones qualify for me (particularly difficult when you consider that my two main sources of income mean that just about anything I do, from buying books to taking a trip to Disneyland, might technically feed into one or both of them). Thanks for the advice!
This is good timely information. I have 3 different sources of part-time income, although only 2 from 2008. I am not really looking forward to figuring my 2008 taxes out.
What a great blog! Lots of useful information that I’m sure will come in handy for many. Keep up the good work!
I have just started keeping track of my online earnings. This was a useful information.
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